Asian equities follow Wall Street lower

Wall Street’s post-FOMC rally ended after less than 24 hours as a plethora of central banks from around the world followed the Fed’s lead and hiked interest rates. The S&P 500 closed 3.24% lower, the Nasdaq slumped by 4.08%, and the Dow Jones fell by 2.37%. In Asia, US futures have rallied on some short covering with S&P 500 futures rising 0.60%, Nasdaq futures gaining 0.90%, and Dow futures have added 0.40%.

The rally in US futures today has taken the edge off the bearishness in Asia, most of the region is in the red. Japan’s Nikkei 225 has fallen by 2.0%, with South Korea’s Kospi down 1.25%. In Mainland China though, markets have once again mysteriously and abruptly reversed early losses, suggesting China’s “national team” is around. The Shanghai Composite is now unchanged for the day, while the CSI 300 is now 0.25% higher, and Hong Kong has risen by 0.35%.

In regional markets, Singapore is unchanged, while Taipei has lost 1.30%. Kuala Lumpur has fallen by 1.35%, with Bangkok down 0.30%, Jakarta slumping 1.70%, and Manila retreating 1.50%. Australian markets have remained laser-focused on Wall Street’s main session and are deeply in the red. The ASX 200 and All Ordinaries have slumped by 2.25%.

European markets had the SNB rate hike to contend with, as well as a weak Wall Street session, leaving them deep in the red overnight. The price action in Asia will give Europe no reason to turn bullish today, and ahead of weekend risk, are likely to start the day lower once again. In the US, a holiday Monday and huge option expiries today mean it might be best avoided altogether.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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